Chip and Dale Inc. produces chocolate chip cookies. Costs for producing one batch appear below:

Direct materials	$ 8.00
Direct labour	3.00
Variable overhead	1.00
Fixed overhead	4.00

An outside supplier has offered to produce the cookies for $14 per batch. If Chip and Dale decides to buy instead of make the cookies, what is the maximum price it would pay?

Select one:

a. $14.40

b. $13.60

c. $16.00

d. $12.00